Diversifying your wealth into precious metals is one of the most important financial decisions you can make. It’s also important to carefully consider what types of precious metals to own amidst the array of options.
The financial backdrop to the current prices of precious metals like silver and gold is that trillions of dollars and other currencies have been created to reflate stock markets and attempt to create a recovery in the property market.
Wall Street has grown more tepid on gold, with many of the investment banks ratcheting back just a bit on their target prices. But most also see prices heading up to and beyond the $2,000 level in 2013, meaning they see a potential gain of 22% or better.
Most investors and savers should hold up to 10% of their investible assets and personal savings in physical gold and for some high-net-worth investors a greater percentage allocation to gold may be appropriate.
With the Greek drama taking an intermission and the euro strengthening at the US dollar's expense, it looks like gold wants to move higher – and has enough momentum to break through strong technical overhead resistance as we approach and possibly exceed $1,800 an ounce.